Assessee can claim deduction for provision for warranty if it was not a contingent liability

HIGH COURT OF KARNATAKA Commissioner of Income-tax versus Toyota Kirloskar Motors (P.) Ltd. IT Appeal no. 174 of 2009 MARCH 23, 2011 JUDGMENT N. Kumar, J. – The Revenue has preferred this appeal against the order passed by the Appellate Tribunal holding that the provision for warranty is (not ?) a contingent liability as contended by the Revenue and that to use a software as required for a particular period, licence fee has to be paid and the said licence fee is a revenue expenditure and it would not become capital expenditure. 2. The assessee debited a sum of Rs. 2,71,0...